Shirt Industry Price per shirt $7 short-run supply 600 demand Shirts per minute The graphs above show a long-run equilibrium because (1) the picking the quantity at which equals Representative Firm Cost or revenue 57 Yequals the (3) each firm makes MC ATC MR-price Shirts per minute (2) the typical fem maximizes economic profit because price equals

Shirt Industry Price per shirt $7 short-run supply 600 demand Shirts per minute The graphs above show a long-run equilibrium because (1) the picking the quantity at which equals Representative Firm Cost or revenue 57 Yequals the (3) each firm makes MC ATC MR-price Shirts per minute (2) the typical fem maximizes economic profit because price equals

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18 Market Representative Firm MC i of A a $7 MR = P ATC b $5 AVC $2 D1 18,000 70 100 115 Quantity (Q) Output (Q) The diagram above shows a Perfectly Competitive market on the left, and a representative firm supplying in that market on the right. In the long run we would expect the market and the Price to Select one: a. existing firms to exit; increase b. new firms to enter; increase С. new firms to enter; decrease d. existing firms to exit; decrease Price $$$
Calculate the consumer surplus if the industry is perfectly competitive according to this diagram in the image.
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Lasguns are produced by identical firms in a perfectly cokmpettitve market. Each frim's Total cost fucntion is TC = 551+16q+q^2 and Marginal Cist frunction is MC = 16+2q. Market demand is P = 216 - 2Q. What is the long-run equilibrium market price?
Which is an example of an almost perfectly competitive market? O the market in licensed physical therapy services O the antique furniture market O the market in pain medications the stock market the National Hockey League
True/False A perfectly competitve firm's supply curve is its marginal cost curve above the minimum average variable cost.
2. In the competitive mink oil industry, each fim has the same cost function: C = 10,000 100 + 0.01q. Demand for mink oil is as follows: Q = p2 What will be the long-run equilibrium price and quantity in the market? How many fims are in the industıy?
PRICE (Cents per bushel) COST (Cents per bushel) 100 90 80 70 60 50 ATC 40 30 20 10 AVC MC 0 5 10 15 20 25 30 35 40 45 50 OUTPUT (Thousands of bushels) The following graph shows the market demand for wheat. 1. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) 2. Place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.) 100 90 80 60 30 20 2 2 2 2 8 8 2 2 2 2 ° 0 Demand 350 700 1050 1400 1750…
The figure below shows the industry demand curve and two possible industry supply curves in the perfectly competitive market for cheeseburgers. Price ($) 8 7 6 51 3 2 1 0 3 5 6 B S₂ A S₁ Select one: ● a. an excess supply of 6 cheeseburgers. b. an excess demand of 4 cheeseburgers. O c. an excess supply of 3 cheeseburgers. d. an excess demand of 6 cheeseburgers. 7 8 Cheeseburgers The market depicted in the figure above is initially at equilibrium at Point A. Suppose firms begin to exit the market, causing the supply curve to shift from S₁ to S₂. 9 10 11 12 Q If the price of cheeseburgers remains constant at $5.00, as a result of the decrease in supply there will be
What is output per firm at the long-run equilibrium price? What is the long-run equilibrium profit?
The table below shows the total costs faced by Gregory's Jewelry firm for different quantities of necklaces sold. Quantity 0 1 2 3 4 5 6 7 8 9 10 Total Cost $64 $79 $98 $120 $145 $171 $198 $228 $262 $305 $353 Gregory's Jewelry firm sells necklaces in a perfectly competitive market with a downward sloping demand curve and an upward sloping supply curve. The market price is $32/unit. A. Calculate the average fixed cost of producing 8 units. Show your work. B. Identify the profit maximizing quantity. Explain using marginal analysis. C. Calculate the economic profit at the profit maximizing quantity you identified in Part B. Show your work. D. Based on your answer to Part C, will the number of firms in the industry increase, decrease, or stay the same in the long run? Explain. E. Based on your answer to Part C, will the market price increase, decrease, or stay the same in the long run? Explain. F. The income elasticity of demand for necklaces is -3 and the cross price elasticity of demand…